10 real ways to earn the first million
At first glance, earning one million might seem like an unattainable goal, but this is actually more realistic than you think. You don't even need a winning lottery ticket.
Of course, in this case your annual income matters, but how you distribute money is much more important. With proper planning, solid work ethic, responsible habits and common sense, investments can grow into a millionth state and even more.
Have a clear plan by incorporating some - or all - of these 12 tips into your lifestyle.
1. Increase your profits
“By widening the gap between what you earn and what you spend, you end up making some profit, just like in business,” said J. D. Roth, who runs a personal finance blog. Money boss... "This profit can be used to achieve your financial goals."
To set aside a million dollars, you need to increase your profits from 5% to 15%. He offered to set aside half of his income and noted that he would have to abandon some expenses in exchange for future financial success. For families with two sources of income, he offered to live on one salary, and the second to postpone.
2. Start with $ 10 million
"Start with $ 10 Million" is actually a joke to trick our brains.
Our psychology often works against us, said Kirk Chisholm, a leader in the innovation advisory group. In fact, making a million with the right investment will not be difficult for you if you are young and avoid psychological traps.
Be careful about selling and buying investments. Create a clear financial plan and follow it. Those who often buy and sell lose compared with those who buy and hold shares.
3. Add passion to your goal
Passion by itself does not earn you the first million, but find what you are really passionate about, recommends Joseph Carbon, adviser to the planning group. Focus. "Not only will you be happy, you are likely to be very successful."
History Chipotle clearly demonstrates this. After graduating from culinary school in 1993, the founder Chipotle Steve Ells really wanted to open a gourmet restaurant. Having no funds for a high-class place, he took a small loan from his father and opened his first Chipotle to raise money for your exclusive restaurant. After selling the 1000 burrito in the first month, he changed his attitude towards luxury cuisine and found his way to wealth with a popular restaurant chain Chipotle Mexican Grill.
Regardless of the path you take to get rich, it will take some time anyway. “It often takes longer to make your first million than your second,” said Daniel Zajak, a certified financial planner.
Fear and impatience can be your worst enemies when you are trying to make money.
5. Real estate investment
Real estate investment is an old and proven path to wealth. However, it is much easier to initially invest in real estate in low-cost areas. If you live in San Francisco or New York, you can invest in promising areas.
6. Customize your lifestyle
Forget that millionaires spend money left and right. Many people who live in expensive homes and drive expensive cars do not actually own great wealth. Those who really have a great fortune don't even live in high-class areas.
7. The government gives you a gift - 401k account. Here's how you can use it to make your first million:
• Enroll in your employer's program and invest the maximum amount permitted by law is $ 18 in 000, plus an additional $ 2016 for those over 6000.
• You get an immediate reduction in taxable income for any contribution to 401k. So if your income is $ 60 000, and you deposit $ 18 000, you are only taxed on $ 42 000.
• As long as the money stays in the account, it grows.
Viewed from a practical point of view, if you deposit $ 18 000 per year on your 401k plan and earn an average of 7% from the investment, you will become a millionaire in the year 23. Invest less or earn less interest, and it will take longer to save up on your first million.
8. Avoid self-destructive statements:
- I don't think anyone owes you anything in life;
- Don't expect anything from anyone.
- Do not incur any consumer debt. If you do not have money to buy something, then you do not need.
- Do not be distructed. If wealth is your goal, go for it despite the challenges.
- Do not be afraid to take on additional work.
9. Come up with something
If you have a lot of really interesting ideas, take and monetize them. It does not matter whether it is a product or a service, as long as people are willing to pay for the benefits it offers.
For example, the founder Spanx Sarah Blakely became the youngest female US billionaire, inventing bikinis that are worn under white pants. Her net worth is currently $ 1 040 000 000, according to Forbes.
Maybe your invention solves a problem experienced by many, or entertains a lot. In any case, people are willing to spend money on something that adds value to their lives.
10. Increase your inheritance
You might think that a relatively small inheritance - for example, $ 25 to $ 000 - is not a profitable option. However, Mark Johnston-Roche, co-founder of HQ, is encouraged to leave funds relatively intact for the next 75-000 years and earn “compound interest,” which can increase significantly over time.
Read also on ForumDaily:
10 tips on how to save money in New York
How to earn up to $ 300 per month while watching movies
How to open a business and get a visa in the USA
Defer $ 5 000 to 2017: a year strategy
45 ways to make more money in 2017 year
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